A first look at the $8.4B PACTS III Third Draft RFP – Bottom Line: This will be extremely competitive!

The latest draft RFP for the $8.4B PACTS III IDIQ was published on Friday and the industry day was announced. To help kickstart your week Steve Delahunty, CEO of Arcetyp, a consultancy that provides growth consulting services to GovCon, shares some notes after a first read.  

By Steve Delahunty

The new draft RFP published has 21 files and is available here.

Each of the three (3) Functional Categories will have its own solicitation per DHS.  

1. Functional Category 1 Administrative Management and General Management Consulting Service (NAICS 541611 size standard $24.5m) 
2. Functional Category 2 Office Administrative Services (NAICS 561110 size standard $12.5m) 
3. Functional Category 3 Engineering Services (NAICS 541330 size standard $25.5m) 

This is the 3rd draft if you are counting. A projected timeline was published by DHS but this might just be for Functional Category 1 (Admin Mgt).  

Reminders:

• Industry Day – November 9, 2023 10am-Noon (link to attend but you need to add it to your calendar) 
• Reminder also about the DHS procurement general update WebEx on 10/31 which will also have a slide on PACTS III (pwd: 4MeetingswCIS!) 
• Solicitation Release – November 17, 2023 (again keep in mind this might just be FC1). 
• Q&A Due – November 28, 2023 
• Proposal Due – January 31, 2024

BOTTOM LINE UP FRONT – Compared to the previous draft this is still extremely competitive with only 8 awards per socio-economic classification per Functional Category (24 total awards). Within each of the 8 awards 2 will be to Primes w/o teammates (it appears), 2 to Small Business Teams, 2 to Small Business Joint Ventures (JVs), 2 to Mentor Protégé JVs. These still require a ton of project experience to score at the top level (for example a bidder can submit 250 projects in Functional Category 1). Projects still must fall into a mix of up to 6 dollar ranges stratified from $10k to $50m and project values are still based on obligated dollars and must be less than 2yrs old. No small business – just 4 tracks: 8(a), WOSB, HUBZone, SDVOSB.

DHS says this third PACTS III draft RFP is only for Functional Category (FC) 1 Administrative Management and General Management Consulting Service (NAICS 541611 size standard $24.5m) but many parts of the Draft RFP files are updated pertinent to all FCs.  

• This is still extremely competitive. DHS estimates eight (8) awards in each of the tracks within each of the three (3) Functional Categories (FCs) and may deviate from these numbers. It was five (5) estimated previously and is now eight (8) but this is still a scant number. 
• New: Of the eight (8) awards DHS intends on awarding two (2) contracts to Prime Contractors and two (2) to each of the different types of SBTAs: Joint Ventures, Prime/Subcontractor(s) and Mentor Protégé. 
• Projects that meet the definition of relevant and recent as defined in the solicitation that are from the Offeror (Prime Contractor or Small Business Teaming Arrangement (SBTA)) itself or a partner/member of the Offeror’s SBTA will be considered. So now teaming is allowed but appears to be only on the SBTA or JV sides. A reminder that the SBTA category will only win 2 PACTS IDIQ awards per FC. 

Not Changed from Previous Draft 

• Still the same three (3) FCs. 
• Still no small business track – just 4 tracks: 8(a), WOSB, HUBZone, SDVOSB. 
• It looks like you can submit up to 50 projects in EACH of the 6 dollar ranges (see below) to score maximum points. For FC1 that would be 200 projects as a maximum (not 300 since the lower range is not in scoring scope for FC1). Documentation for each project is required (FPDS or Contract Documents, PWS/SOW). 
• Project scoring using obligated value for FC1 (for example, changed slightly) is 0pts each for >10k<$50k, 74pts each for >$50k<$1m, 82pts each for >$1m<$5m then 74pts each for >$50k<$1m value then 32pts each for >$5m<$25m value then 6pts each for >$25m<$50m then 2pts each for >$50m. 
• Point scoring is grouped by dollar value of the project but within each FC the totals of points are weighted towards certain groupings of dollar values. Ideal to maximize projects for FC1 at the $50k to $1m level and $1m to $5m level and $5m to $25m level (no points for under $50k). Ideal for FC2 to maximize those plus the $10k to $50k level. Ideal for FC3 to maximize the $50k to $1m level and $1m to $5m level and $5m to $25m level. 
• Project Dollar Ranges: >$10,000<$50K and >$50,000.01<$1M and >$1,000,000.01<$5M and >$5,000,000.01<$25M and >$25,000,000.01<$50M and >$50,000,000.01 
• Projects can be only up to 2 years old as of the issuance of the final solicitation and must have at least 6 months of duration. 
• DHS will rank all proposals based on the scoring and scoring is almost entirely related to projects submitted. Some points for DCAA Accounting system and Secret/TS Facility clearance. 
• Appears to be no large business teammates allowed except via MP/JV. No projects from teammates (other than from members in a small business team or JV or MP/JV). 
• If submitting as a MP/JV, 40% of projects must have been performed by the Protégé in the SBA MPP. 
• Projects must still be exclusive to your team, “once a project is used it shall not be used again under any circumstances to include but not limited to under another functional category or as a partner/member of another Offeror”. 
• Mandatory Adequate Accounting System for LH and T&M (can be validated by CPA) and Facility Clearance (Secret or TS at time of bid). 40pts scoring for Accounting, 20pts for Secret FCL, 40pts for TS FCL. 

New Notes of Interest 

• Project verification forms are similar to what was done on GSA Polaris and GSA OASIS+. Along with supporting documentation as done with those procurements (i.e. FPDS, PWS/SOW, etc.). 
• Managing Venturers or Prime Contractors of SBTAs that are Joint Ventures or Prime/Subcontractor(s) as defined in the solicitation may be granted additional points if Partner/Subcontractor agreements are provided that prove the Offeror has managed teams of the same size or larger on other projects. 
• JVs, if bidding as a JV, 40% of projects verified must have been performed by the partner(s) of the joint venture that possesses the socioeconomic status associated with the track the Offeror is proposing. 
• Labor Category pricing (Attachment 3 & 4) is required, but just for a small set (example for FC1: Task Order Project Manager I-II-III, SME I-II-III, Analyst I-II-III, Admin/Clerk I-II-III).  Further pricing on task orders using the Department of Labor (DOL), Bureau of Labor Statistics (BLS) Standard Occupational Classification (SOC). Attachment 8 provides max fully burdened rates while still receiving an award, do not exceed those. 

Other Admin Notes of Interest: 

• Filenames and contents of most RFP attachments changed.  
• Attachment 9 Proposal Org has extremely detailed guidance on proposal submission file filenames and structure. 
• DHS intends to use the Procurement Integrated Enterprise Environment (PIEE) suite for proposal submission and retrieval. 

About Steve Delahunty

Steve Delahunty is a senior leader with 15 years of executive experience in technology and management consulting and over 30 years in the information technology field including a combination of commercial and federal sector consulting services expertise. He is Chief Executive at Arcetyp LLC providing oversight of consulting services and engagement management across the firm’s client base. Arcetyp LLC (ARC) provides growth consulting services to businesses in the US government contracting industry.

🔊 Listen to Story